Optimism on the rise: NOMAR Symposium highlights promising economic growth opportunities

There are reasons for optimism when it comes to real estate and economic development in the New Orleans region, despite lingering challenges.

That was a key message during the 14th Annual Economic and Real Estate Forecast Symposium by the New Orleans Metropolitan Association of REALTORS® Commercial Investment Division. This year’s symposium centered around the theme of “New Orleans: Growth, Stabilization or Disruption?” drew more than 500 registrants and attracted more than 45 sponsored partners from multiple real estate disciplines.

In addition to expected boosts from Taylor Swift’s upcoming Eras Tour shows and the hosting of Super Bowl LIX in February, panelists said several ongoing projects could enhance long-term economic development in the region. The largest is the planned Louisiana International Terminal (LIT) and St. Bernard Transportation Corridor. The LIT would be a new container terminal that would serve vessels of all sizes. Projections show the LIT would lead to more than 18,000 new direct and indirect jobs and more than $1 billion in new state tax revenue by 2050.

“This project has the ability to be transformational for individuals and families,” said Meaghan McCormack, chief executive officer of the St. Bernard Economic Development Foundation, noting that LIT would open up numerous well-paying jobs, leading to increased tax revenue and spending, more home purchases and overall economic growth.

“The regional impact can be tremendous,” McCormack said. “We know that Jefferson Parish would see a boom, especially in the retail sector. Many people and businesses in indirectly related areas would certainly benefit.”

In Jefferson Parish, the planned Food & Beverage Incubator would be a major step toward supporting existing businesses and serving as a catalyst for new entrepreneurs, said Jerry Bologna, executive director of the Jefferson Parish Economic Development Commission. The 15,000 square foot incubator will include three commercial kitchens, demonstration and training space, offices and storage space, including cold storage.

“This is an opportunity for us to foster new businesses and capture those early-stage ventures,” Bologna said.

Meanwhile, in St. Tammany Parish, six healthcare institutions are working closely with local colleges and workforce development officials on building that economy on the Northshore and developing a talent pipeline from school-aged children all the way to retirees. Ashley Llewellyn, vice president of St. Tammany Corporation, noted that leaders from St. Tammany, Tangipahoa and Washington Parishes are all working together on that initiative.

In addition, those three parishes are working together on more business formation projects through STartUP Northshore.

“We see this as part of our workforce and talent retention strategy,” Llewellyn said. “We have innovative, creative, thoughtful people in our community. How are we challenging them to think outside of the box? Both that and our healthcare economy work are exciting for us. We’re also wrapping up two large grants with those parishes in addition to Livingston and St. Helena. Those regional partnerships are sometimes formal. Sometimes they are really informal. They are really exciting all of the time.”

Economic development projects that are thoughtful, strategic and long-range focused could be the boosts needed to uplift a residential housing market that continues to lag compared to previous years. Dr. Gary Wagner, Acadiana business economist endowed chair at the University of Louisiana at Lafayette, said closed home sales this year in the NOMAR region are at their lowest rate in more than a decade. At the same time, there has been a substantial increase in the number of active residential listings in the NOMAR region.

“This is a relatively unprecedented period for our region in the sense that we have a very high level of inventory for something that isn’t related to a natural disaster,” Dr. Wagner said. “What I think is driving a lot of the activity here is really population loss, more so than even insurance costs.”

However, Dr. Wagner said there are some positive signs in the real estate market. Median home prices over the past 12 months “look good considering the amount of inventory,” he said. The number of price reductions are close to normal, which is another good sign. In addition, Dr. Wagner noted that the national economic outlook is positive, inflation continues to decline in most areas, and there are no indications of a recession for at least the next five quarters.

“Once the (presidential) election is over, things will pick back up,” added Bob Bergeron, principal in Crescent Title and the law firm of Bergeron, Douglass, Frosch and Mack. “Uncertainty always causes people to pause on the sidelines. Whether you like the outcome of the election or not, it’s over and people will be ready to move on.”

Bergeron added that there are several reasons why real estate agents should see this as a favorable moment in the industry. There is a pent-up demand for homes as many people have delayed new purchases in recent years and renters who have remained tenants are ready to become homeowners. Low interest rates and motivated sellers also have the potential to galvanize the residential market, while on the commercial side, more business owners are interested in owning a building rather than leasing space.

“The opportunity is out there. It’s going to get better,” he said.